Bankruptcy Filings, Bankruptcy Trends

U.S. Corporate Bankruptcy Filings Hit 13-Year Peak

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Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023, according to the U.S. Courts. This continues a moderate rebound after more than a decade of sharp decline. Corporate bankruptcy filings in the U.S. rose again in December 2023, ending the year with the most filings since 2010.

S&P Global Market Intelligence recorded 50 bankruptcy filings in the month. The total was an increase from the 33 recorded in November.

There were 642 total filings in 2023, significantly above the previous two years and marginally more than in 2020, which saw an influx of Covid-19 related filings.

Seven industrial companies and seven consumer discretionary companies filed for bankruptcy over the month, followed by six filings among information technology companies and six from the healthcare sector.

Consumer discretionary companies recorded the most bankruptcies in 2023 with 82 filings. Many of the companies attributed their filings to rising interest rates and inflation, which impacted their post-pandemic operations.

There were bankruptcy filings in 19 states and the District of Columbia in December, with the greatest number originating from California, Texas, and Florida.

During the year, 95 California companies sought bankruptcy protection, followed by 75 from Texas and 68 from Florida. New York added 58 filings in 2023, while New Jersey registered 31.

Additional states with 15 or more filings in 2023 included Massachusetts, Georgia, Nevada, Illinois, North Carolina, and Pennsylvania.

Source: U.S. Bankruptcies hit 13-year peak in 2023; 50 new filings in December. (January 9, 2024)

Credit Card Debt

Cities with the Most Credit Card Debt

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The average person has more than four different credit cards in their wallet, according to WalletHub’s proprietary data. People in some cities have more cards than others. The average in the top cities being over six cards per person. To determine the cities where credit card ownership is increasing the most, WalletHub analyzed the latest consumer-finance data across four key metrics. These metrics measured the average number of credit cards owned per person and average number of new cards opened per person in Q4 2023, as well as the percent change in both of those numbers from Q4 2022.

In total, Americans have over $1.2 trillion in credit card debt as of Sept. 30, 2023. Miami ranked No. 1, with an estimated payoff time of nearly 111 months — over nine years on average. Some of the reasons for the enormous timeline are the city’s high median credit card debt ($3,106) and relatively low median earnings for workers ($38,823), researchers explain. Several other Florida cities ranked near the top of the list for the least sustainable credit card debt, including Port St. Lucie (No. 4), Cape Coral (No. 5) and Tallahassee (No. 10).

If a person is struggling with credit card debt and is unsure of which route to take, it is always best to consult a legal professional to discuss his or her options. An attorney can look at the person’s situation and can advise him or her on whether bankruptcy is appropriate or whether other options are best.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans.  There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Click here to read more.

Sources:

Cities with the Most Credit Cards (wallethub.com)

Cities with the least sustainable credit card debt (wallethub.com)

Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award 2024 for the 11th Consecutive Year

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MIAMI – (January 29, 2024) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2024 AVVO Clients’ Choice Award. To obtain this award, an attorney must receive five or more exceptional client reviews in the same year. Kingcade has been awarded the Clients’ Choice Award 11 years in a row. In addition to the Clients’ Choice Award, he has earned 1,500 contributor points this year, and was presented with the Top Contributor Award on the site.

One of attorney Kingcade’s clients had this to say on AVVO:

Made the process very easy.

Declaring bankruptcy was a straightforward yet daunting experience for me. The team at Mr. Kingcade’s office, including Mr. Kingcade himself, ensured a swift and seamless process. They dedicated time to thoroughly explain each step and addressed all my queries. My deepest gratitude goes to them for their significant support for my boys and me, especially for their enduring patience. I often called and delayed submitting the necessary documents, yet they were understanding. I wholeheartedly rate them with the highest accolades and strongly recommend their services. My sincere thanks once again.

-Bianca C.

Click here to read all of Miami Bankruptcy Attorney Timothy Kingcade’s client reviews on AVVO. Timothy has also earned a “Superb” 10.0 AVVO rating in the area of bankruptcy law, the highest rating an attorney can receive.  The rating is calculated using a mathematical model, which takes into consideration the years an attorney has practiced law, their professional achievements, discipline history and industry recognitions.  The rating is completely objective and unbiased.  Attorneys cannot pay or petition the site to have their rating changed, which makes AVVO one of the most respected lawyer rating services in the country and an invaluable legal resource for consumers.

Attorney Timothy S. Kingcade founded Kingcade Garcia McMaken, a prominent law firm that handles a substantial number of bankruptcy filings each year. Timothy, along with his dedicated team, provide comprehensive legal representation to clients throughout South Florida. Kingcade Garcia McMaken is committed to helping clients navigate the complexities of bankruptcy law. Their experienced attorneys guide individuals in understanding recent changes in bankruptcy regulations and the critical distinctions between filing under Chapter 7 or Chapter 13 bankruptcy. The firm also handles foreclosure cases alongside bankruptcy matters. Throughout South Florida, Kingcade Garcia McMaken has earned a solid reputation as a dependable and effective advocate for clients from diverse backgrounds. The firm’s commitment to providing personalized service is evident, with their attorneys taking the time to clearly explain the available options based on each client’s unique circumstances. The personalized approach ensures that clients receive the individual attention and care they deserve during the legal process.

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Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish. For more information, visit https://www.miamibankruptcy.com/ or call (305) 285-9100.

Credit Card Debt, Debt Settlement

Why Debt Settlement Is the Wrong Way to Go When Dealing with High Credit Card Debt

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When someone is struggling with high credit card debt, it can be easy to take any offer that promises to eliminate that debt. This is why so many debt settlement companies exist. These companies are often referred to as “debt relief” or “debt adjusting” companies, and their claim is they can negotiate directly with the consumer’s creditors to reduce the amount he or she owes. However, when it comes to dealing with high credit card debt, working with a debt settlement company is not always the best plan.

During the debt settlement process, the consumer will stop making payments on his or her credit card debt in hopes that his or her creditors will settle for less than what is owed and will negotiate with the debt settlement company. The problem is, creditors are not bound to work with the debt settlement company, and this process can often take years to complete.

student loan debt

Biden’s New Plan for Student Loan Forgiveness

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President Biden has a ‘Plan B’ lined up for student loan forgiveness, which looks significantly different from the first plan.

His original plan, which was recently blocked by the U.S. Supreme Court, would have cancelled up to $20,000 in student loan debt for tens of millions of borrowers. Following the ruling, the President created a Student Loan Debt Relief Committee to create an alternate plan.

The President’s original plan impacted nearly 40 million American borrowers, but the new plan will be narrower in reach. The original, which covered more than 90 percent of federal student borrowers, will now cover just 10 percent.

Bankruptcy Law

What Is an Emergency Bankruptcy Filing and When Is it Used?

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An emergency bankruptcy filing is a streamlined process used in situations where the filer urgently needs to stop a creditor from collecting on a debt. It is often referred to as a skeleton bankruptcy filing because it is so simplified.

The filer receives the same benefits of the automatic stay that he or she would receive under a normal bankruptcy case, which puts an immediate halt to all collection activity. The emergency filing gives the same protection after completing certain online forms and submitting the remaining required documents later.

Bankruptcy Filings, Bankruptcy Law, Chapter 11

Rudy Giuliani Files Bankruptcy After Being Ordered to Pay $150 Million in Defamation Lawsuit

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Former New York City mayor, Rudy Giuliani has filed Chapter 11 bankruptcy in federal court, just days after a jury ordered him to pay $148 million to two former Georgia election workers he falsely accused of fraud. The accusations were made following Donald Trump’s 2020 presidential election loss.

According to the filing, Giuliani listed debts between $100 million and $500 million, and assets worth up to $10 million. He also lists pending lawsuits, including three defamation cases over his statements after the 2020 election that haven’t yet gone to trial and could add to his debt if he’s ordered to pay damages.

Giuliani also listed nearly $1 million in unpaid taxes among his liabilities, as well as hundreds of thousands of dollars owed to lawyers and accountants.

Credit Card Debt

Can Credit Card Debt Be Written Off?

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According to the U.S. Government Accountability Office, the amount of credit card debt consumers face has reached a record high with consumers owing more than $1 trillion to credit card companies. It comes as no surprise that many people are looking for ways to escape their debt, if at all possible, which leads one to the question: is it possible to get credit card debt written off?

The answer is yes, but it is not a simple yes. The process can involve negotiations with credit card companies or debt collection agencies or even legal proceedings.

Kingcade Garcia McMaken, Legal Awards

TIMOTHY S. KINGCADE RATED ONE OF THE TOP 3 BANKRUPTCY LAWYERS IN MIAMI for 2024

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MIAMI –Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken  has been rated one of the Top 3 bankruptcy lawyers in Miami, FL by Three Best Rated® for 2024.

“It is an honor to have received this award,” said Timothy S. Kingcade. “We know what our clients are going through when they come into our offices, and we treat them with the upmost care and respect during their most difficult financial times.”

Kingcade Garcia McMaken’s culture of care makes clients feel comfortable and confident about their legal representation when filing for bankruptcy.

Credit Card Debt

Ways to Avoid Christmas Credit Card Debt

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It can be easy to fall deeper into debt during the holiday season. Those celebrating the holidays are four times more likely to expect to spend the most money on gifts for family and friends (80%) compared to dining out (21%), social events (20%), travel (17%) and holiday decorations (16%) this year.

According to a survey by investment bank D.A. Davidson, 40 percent of American consumers are starting the holiday season with more credit card debt than they did a year ago, and 48 percent of them will end the holiday with even more debt. The fact that average credit card interest rates are at an all-time high doesn’t help.